Going above and beyond!
We love to begin our day with a freshly brewed cup of coffee. Thanks to Starbucks, this experience has reached a new level. Starbucks is a perfect example of pushing customer boundaries; discovering new markets; changing the perception of customers.
In an ever-evolving market, the question that most organizations face is What’s Next? I think to grow above and beyond companies must consider adopting a blue ocean strategy. So how must they adopt this? How must this become part of their core competencies and their missions?
The first and most crucial step must be to explore new possibilities. Often, organizations try to outrun each other. This only has a detrimental effect on all the companies and eventually affects the consumers. By identifying new unexploited markets, the organization tremendously increases it chances for success. It can even achieve monopoly while others are still trying to catch up. It also
Secondly organizations must try to achieve a balance between value and cost. Let’s us discuss this point from Starbucks points of view. We all subconsciously know that a cup of coffee is expensive at Starbucks. But then why do we see customers flocking the stores? It’s for the experience. Customers do not perceive Starbucks only as a coffee store but a place to unwind and relax. Similarly, organizations with a desire to transform must strive for an all round experience. By building this long lasting relation with customers, organizations can maximize their market share.
Finally, organizations must consistently try to achieve low cost and differentiation of products. As mentioned in the article, customers really do not care which detergent they buy anymore. This is because as competition increases, products tend to become standard and customers can’t really tell the difference. IKEA, for example, is striving for low cost but not for differentiation in products.
In the current market, companies must focus on tailoring products for each consumer group. Major brands like GAP, which are part of a larger corporation, focus only on a particular age group and hence are successful.
This also enables other sub –units of the larger corporation to cater to other age groups and optimize resource utilization. By getting differentiation at affordable costs, companies gain customer loyalty and are no longer competing neck to neck with each other. This tends towards a market in which both the companies and customers flourish..
I think using a combination of the above three steps can help companies become successful. Here we define success not in terms of money or market share but in terms of gaining customer loyalty, providing the best products at affordable costs. Eventually, no organizations will competing with each other, but be redefining success.